Arkansas Administrative Code
Agency 017 - Arkansas Building Authority
Rule 017.00.01-001 - Revision Sections: Section 1 - General, Section 3 - Real Property Transfers, Section 4 - SBS Construction Section, Section 5 - Real Estate Services Section, Section 6 - Architectural Section, Section 7 - Engineering Section

This document shall be known as the Arkansas State Building Services Minimum Standards and Criteria (MSC). Copies of this manual may be obtained from Arkansas State Building Services (SBS). It may also be examined in the Office of the Secretary of State or at the Office of the Circuit Clerk in any county in the State. SBS maintains a website at " www.asbs.com ". The MSC can be reviewed or downloaded from this site. The purpose of this document is to establish standards and procedures as required by Ark. Code Ann. § 22-2-101 et seq. and by other applicable laws.

SBS has many duties and responsibilities involving capital improvements, real estate transfers and leases. Capital improvements are overseen and managed in part by the Construction, Architectural, Engineering and Building Operations Sections. The Real Estate Services Section oversees the state leasing of publicly or privately owned space as well as transfers of State real property.

Although SBS has specific tasks, which it carries out on a daily basis, it also has within its organization the expertise to serve various state entities in the resolution of special problems relating to state-owned and leased buildings. Other functions of SBS are described by law and as determined by the Director or the Council, or both.

The authority of State Building Services to issue rules and regulations is established by the "Arkansas State Building Services Act", and other applicable laws. All agencies within SBS jurisdiction are within the jurisdiction of the MSC, including Institutions of Higher Education who have entered into agreements with SBS pursuant to Ark. Code Ann. § 22-2-113(b)(1).

Americans with Disabilities Act Accessibility definitions are located in § 6-6 01.

Addendum/Addenda means a supplement or supplements to the bid documents, issued prior to the submission of bids, for the purpose of clarifying, correcting, deleting or adding to the bid documents previously issued.

Agency means any state agency including state boards, commissions, agencies, departments, and institutions of higher learning, which are under the jurisdiction of SBS pursuant to Arkansas laws or regulations.

Alteration means work performed to change the interior arrangement or other physical characteristics of an existing facility or installed equipment so that it can be adapted to a new use.

Architectural Section means the Arkansas State Building Services Architectural Section.

Bid Documents means all documents associated with the bid process, which includes but not limited to the advertisement, invitation to bid, instruction to bidders, the bid form, and the proposed contract documents including any addenda issued prior to the receipt of bids.

Bid Formalities means requirements established by statute for bidding that shall not be waived.

Bid Tabulation means a tabulation of all bids received, reflecting bidders name, address, license number (if applicable), amount of bid(s), receipt of bid bond, acknowledgement of addenda, and sub-contractors' names.

Building or Facility means all or any portion of building, structures, equipment, roads, walks, parking lots, parks, sites, or other real property or interest in such property.

Building Operations Administrator means the Arkansas State Building Services Building Operations Section Administrator.

Building Operations Section means the Arkansas State Building Services Building Operations Section.

Capital improvement means all lands, buildings, structures, utilities, on-site and off-site improvements, and other appertaining improvements, existing or future, and all construction, repairs, alterations, and renovations thereof which are undertaken, owned, operated, or otherwise managed by a state agency except those exempted by law or regulation.

Commissioning means a systematic process of ensuring that building systems perform interactively according to the design intent and the Owner's operational needs. This is achieved beginning in the design phase by documenting the design intent and continuing through construction, acceptance, and the warranty period with actual verification of performance, operation and maintenance (O&M) documentation verification and training of operating personnel. (See also re-commissioning and retro-commissioning)

Competitive Bid means bidding by quote from a minimum of four (4 ) invited bidders for capital improvements where solicitation of bids by formal means is unnecessary. Competitive bids may be solicited by mail, telephone, email, fax or in person by the purchasing official.

Construction means making or forming an improvement by combining parts, labor, or materials; the erection, alteration, or repair of a structure or physical object under the jurisdiction of SBS.

Construction Administrator means the SBS Construction Section Administrator.

Construction Section means the Arkansas State Building Services Construction Section.

Contract Documents means those documents which comprise a contract in a capital improvement project including but not limited to the owner agency/contractor agreement, the general and supplementary conditions of the contract, plans or drawings or both, specifications, all addenda, modifications, and change orders together with any other items stipulated as being specifically included.

Council means the Arkansas State Building Services Council.

Design Professional means a person or firm who provides professional expertise in order to carry out a capital improvement. Design professionals may include but may not be limited to the following professionals: Planners (land, city, utilities, etc.), Architects, Landscape Architects, Surveyors (land), and Engineers (Consulting and Professional Engineers providing expertise in various licensed fields only, that is, civil, electrical, mechanical, structural, sanitary, etc.).

Director means the Director of Arkansas State Building Services.

Element means and includes but not limited to an architectural or mechanical component of a building, facility, space, or site, e.g. telephone, curb ramp, door, drinking fountain, and seating.

Engineering Section means the Arkansas State Building Services Engineering Section.

Final Completion means the agency, with SBS approval, acceptance of a project from the contractor or Lessor upon certification by the design professional, if applicable, that the project is complete and in accordance with the contract documents; final acceptance is confirmed by making the final payment unless otherwise stipulated at the time of making such payment or by letter of notification and rent commencement in leasing situations.

Formal Bid, as used within the Construction Section, means a bid that has been solicited through published plans and specifications in accordance with statutory requirements including; legal advertising stating a bid time, bid date, and bid opening at a published location; bond requirements; wage determination (if applicable), etc. Formal Bid, as used within the Real Estate Services Section means a bid that has been solicited through published specification and criteria, advertised notice stating a bid time and date for a bid opening at a published location.

Formalities means any procedural, administrative, or clerical requirements not required by statute. Formalities may be waived where such waiver is in the best interest of the agency or state. Formalities in bid documents, which contain the word "shall" may be waived where such waiver is in the best interest of the agency and not required by statute.

Improvements means a change or addition that improves the original intended purpose, performance or appearance of an existing facility or equipment.

Intent to Award means a letter to the contractor who has the successful bid for a project stating that it is the owner's intent to award him a contract. Intent to award letters may be issued to assist contractors in obtaining performance bonds prior to issuance of a contract.

Maintenance Work means the repair, but not the replacement, of existing facilities or equipment when the size capacity, type or extent of the existing facility or equipment is not thereby changed or increased.

Minimum Standards and Criteria - and other like phrases means those standards and criteria relating to bidding and requests for proposals, construction, design, maintenance, roofing, transfers of property, including but not limited to the purchasing or selling of property, and leasing of state agencies' capital improvements or leasing of private properties to state agencies or entities as adopted by the Council after appropriate deliberation and where advisable, public hearings, or notice to interested persons and organizations. The Arkansas State Building Services Minimum Standards and Criteria is also referred to as the "MSC."

MSC means the Arkansas State Building Services Minimum Standards and Criteria.

Notice to Proceed means a written notice to proceed with prosecution of the work on a specific project in accordance with an SBS approved contract.

Performance Specification means a specification which generally describes the characteristics of the item required, e.g. the style, type, quality, character, economy of operation and purpose to be served by the item and the results required of the item provided. It does not restrict the bidder to a specific brand, make, or manufacturer, nor does it tell the Contractor how to achieve the required result.

Proprietary Specifications means a specification that limits or restricts the bidder to two (2) sources only for a product or service. Specifications are considered proprietary when:

The Agency, if purchasing property that has been previously taxed, should request an exemption from the county tax assessor for real property taxes as soon as possible after closing and recording of the deed and abstract if such a request is necessary.

All sales of real property owned by agencies shall be made pursuant to Ark. Code Ann. § 22-6-601. This code provision should be reviewed for questions concerning governor's approval, appraisals, appraiser's oaths, advertising, bid bonds, bid openings and award of contract through a bid process as well as remaining fund balances from the receipt of monies. Agencies should consult Ark. Code Ann. § 22-6-113 concerning the state's retention of mineral interests in any sale of state real property.

Any bidder or prospective bidder who is aggrieved in connection with the specifications, solicitation for or award of a sale of land pursuant to Ark. Code Ann. § 22-6-601(g)(h), has the right to protest to the Real Estate Services Administrator. The protest shall be submitted in writing within five (5) work days after the bid opening and identify the project by bid number or with sufficient detail to identify the project, and shall with specificity set for the allegations of the acts or omissions related to the protest. SBS shall endeavor to resolve protests promptly.

When an Agency, such as an institution of higher education, is authorized by law or regulation to have an Agency purchasing official, as opposed to a purchasing agent, that official will be acceptable to the SBS for the processing of bid and contract documents and bid openings for capital improvements. All such processes must be coordinated with the Construction Section unless exempted by law. However, all review and approval of capital improvement expenditures and the front end bid documents shall be with the Construction Section, unless exempted by law. The Council reserves the right to withdraw this authority where such procedures are not followed. Verification of capital improvements shall be pursuant to Arkansas laws. Nothing in this section is intended to prohibit an Agency from utilizing SBS in the same manner as Agencies not authorized to have an Agency purchasing official.

Purchase orders for capital improvement, regardless of the source of funds involved, shall be issued in accordance with § 4-4 01 et seq. Capital improvement purchase orders for projects, which are $25,000 or more made by institutions of higher education and $20,000 or more by other Agencies, shall be submitted prior to the start of work, and must specify the exact dollar amount to be paid. A performance and payment bond shall accompany the purchase order. The purchase order shall contain the applicable language, disclosure forms and documents, and approval pursuant to the Governor's Executive Order 98-04. A set of back up documents shall accompany the purchase order. Applicable back up documents shall include: Bid Tabulation; Insurance Certificates, Executive Order 98-04 forms or approval or both; proof of advertising; performance and payment bond. The dollar amount of the capital improvement purchase orders shall include, but is not limited to all taxes, insurance, bonds, and freight costs. All purchase orders shall be submitted in one (1) original and one (1) copy with back up. The Construction Section will retain the copy and backup and the original returned to the Agency upon approval of the purchase order.

Small order contracts for capital improvements of $5,000.00 or less may be made by the open market. The Construction Section shall not be responsible for inspections of or approval of small order contracts under this subsection.

Contracting capital improvements above $5,000.00 and below $20,000.00 shall be by competitive quote bid. When quote bidding capital improvements, a minimum of four (4 ) bonafide bidders shall be requested to bid. The Construction Section shall not be responsible for inspection or approval of competitive bid contracts under this section.

The Construction Section shall not condone splitting of purchases to avoid these listed bidding procedures. When an Agency is found practicing split purchases, it shall result in revocation of the Agency's purchasing authority. Refer to § 4 -102.

These bidding regulations are applicable to all bids produced by SBS, a design professional or an Agency for state projects.

Once the plans and specifications have been given final approval by either the Architectural Section or the Engineering Section of SBS, Agencies' capital improvement projects shall be advertised pursuant to Ark. Code Ann. § 22-9-201 et seq. and § 19-4-1401 et seq. Proof of advertising shall be furnished to the Construction Section. The Agency will be responsible for paying for such and any other advertising cost.

Bid opening dates and time will be approved by the Construction Section, only after receipt of the approval to bid letter approval of the plans and specifications by either the Architectural or Engineering Section on those projects prepared by Design Professionals. While bid openings should be held within the premises of SBS, however, the Construction Section may elect to hold bid openings in other locales. Purchasing officials acting under §4-102 may hold their bid openings at locales other than SBS premises.

The responsibility for the supervision of opening bids is with the Construction Section, SBS, unless the purchasing official is acting under §4-102. The person authorized to read the bids shall first review the bid documents to determine if the bid is responsive. Items to verify are: Bid Form is complete, contractor's license number is indicated, applicable bid bond is enclosed with the correct amount, bid amount (numerically shown), signatures, addenda acknowledgement, corrections or changes initialed, and applicable subcontractors are listed. If all documents appear to be properly submitted and executed, the official may proceed to read the bid. If any statutory formality is omitted, the bid should be declared non-responsive and remain unread. Formalities other than statutory may be waived.

Regardless of whether bids are opened by SBS or the design professional, all tabulations must be sent (faxed, mailed or electronic email) to the Construction Section within twenty-four hours of the bid opening. Bid tabulations must contain the following information which includes but is not limited to: the date and time of the bid opening; the project number; the amount of the bid; the contractor names, whether a bid bond was included along with the bond amount, and the listing of any applicable subcontractors. Certification of bid tabulations are the responsibility of the Construction Section for in house bids, and the responsibility by either the Agency purchasing official or Design Professional for all other bids.

Rejection of a bid due to scrivener error may be made pursuant to Ark. Code Ann. § 19-4-1405.

Pursuant to Ark. Code Ann § 17-25-101 et seq., for all state capital improvement projects, including residential projects, each contractor is required to be properly licensed with the Contractors Licensing Board and shall indicate on his bid form his current license number as issued by the applicable licensing entity. Failure to such will be cause for rejection. The Construction Section is responsible for licensure verification and the purchasing official is responsible for projects pursuant to §4-102.

The listing of subcontractors on the form of proposal shall be made pursuant to Ark. Code Ann. § 22-9-204 and the bid documents. The designated official as stated in §4-308 shall verify the licenses of the applicable subcontractor's listed.

State projects under SBS jurisdiction shall not include the use of deductive or additive alternates.

On state-funded or other non-federally funded capital improvement projects, wage determinations shall be published pursuant to Ark. Code Ann. § 22-9-301 et seq. The advertisement of the notice for such projects and the invitations for bids shall state that state funds are being used and that the State Wage Determinations shall apply.

Any or all addenda will be acknowledged on the bid form and such acknowledgment shall be stated during the reading of the bids. Every effort should be exerted to eliminate addenda. If addenda are necessary they should be issued as soon as possible, but in any event not later than three (3) working days before receiving bids. An addendum, upon approval by the Construction Section, which only sets a later bid date, may be issued anytime before time has been called for the opening of bids. In the event an addendum requires changes in the scope of the project, an appropriate extension of the bidding period should be granted. No addenda shall be issued without the prior approval of the Construction Section.

The period of time allocated for the work shall be stated as a calendar date. The Agency, with input from the Design Professional, shall decide on the amount of liquidated damages and the amount of such damages to be included in the project specifications. Refer to § 4-404.

All bids received shall be recorded by date and time on the sealed bid envelope. The recorded time and date shall be determinative regarding issues of lateness. Bids received at the office designated in the invitation to bid, but after the time has been called for receipt will not be considered, unless, it is determined that the last receipt was due solely to mishandling by the State after receipt at the State office designated in the invitation.

Bidders may submit written modifications to their bid at any time prior to the exact time set for receipt of bids. Modifications may be made on the bidder's envelope. No modifications made shall show the base bid amount. The bidder must sign any bid modification.

Withdrawal of bids by fax is authorized, but such withdrawal must be verified by a follow up letter from the bidder before such withdrawal is finally accepted, but only if the withdrawal is made prior to the time being called for the opening of the bid. Withdrawal by fax shall only cause the bid to remain unopened and unread for such period of time as required to receive confirmation by letter but no later than 3 work days. A bid may also be withdrawn in person by a bidder, or his representative, provided, his identity is made known and he signs a receipt for the bid, but only if the withdrawal is made prior to the exact time set for receipt of bids.

At the time of opening of bids each bidder will be presumed to have read and to be thoroughly familiar with the plans and contract documents, including all addenda. The failure or omission of any bidder to examine any form, instrument or documents shall in no way relieve any bidder from any obligation in respect to his bid pursuant to Arkansas Gross Receipt Tax Regulations Bidders on capital improvement projects are not tax exempt and cannot avoid sale or use taxes for whom they are performing for.

All deletions, changes, additions, or alterations of the bid documents will be acknowledged and read aloud. If such modifications are not waived, the bid shall be declared non-responsive and rejected. Corrections or change of figures must be noted and unless initialed by authorized officials, shall be sufficient grounds for rejection.

Until such time as the bids have been reviewed and certified, any announcement or reference to the low bidder will use the phrase, "apparent low bidder". Contract awards should not be made on the day of bid opening except in special cases and approved by the Construction Section.

Any actual or prospective bidder who is aggrieved in connection with the project documents, or award of a capital improvement contract has the right to protest to the Construction Administrator, or the Agency purchasing official of the Agency that prepared the bid. The protest shall be submitted in writing within five (5) work days after the bid opening and identify the project by bid number or with sufficient detail to identify the project, and shall with specificity, set forth the allegations of the acts or omissions related to the protest. Since time is of the essence in award of all capital improvement contracts, protests and their resolution shall be resolved promptly. SBS shall be informed of protests to purchasing Agency and their response. Subcontractors or suppliers are not considered bidders under this subsection.

The Construction Administrator, the Agency purchasing official or a designee of either office shall have authority to settle or resolve a protest of an aggrieved bidder actual or prospective, concerning the project bid documents, solicitation, or award of a contract.

In the event no bids are received or the bids did not meet the requirements of the project documents and it is apparent that further solicitation of bids would be futile. The contract may be awarded to any available qualified contractor only after obtaining the approval of the Construction Administrator or designee.

This section is applicable to all agency capital improvement project regardless of whether a design professional has contract administration or not.

The Construction Section has the responsibility of inspecting all projects. The Construction Section will make periodic checks on all projects, which are $25,000.00 or more. If the Agency has inspection issues, which need to be addressed regarding the contractor or the project, the Agency should immediately notify the Construction Section. Pre-construction meetings may include a SBS Inspector or designee.

When the project is presumed to be complete, the Construction Section shall be notified by the appropriate entity so that a final inspection may be performed. Final pay requests and release of retainage will not be approved by the Construction Section until all close out procedures have been completed. See § 4-500 through § 4-504.

Any amount of liquidated damages owed by the contractor to the Agency will be calculated by multiplying the "amount per day" of liquidated damages specified in the contract documents by the number of days, which occur between the contract completion date (as amended by applicable change orders) and the date of issue of the certificate of substantial completion date. Deductions for liquidated damages can be deducted from the final pay request. Prior to final payment approval and retainage release, the Agency shall provide to the Construction Section written documentation and justification regarding any assessment or forgiving of liquidated damages. The final payment will be reflective of such actions. The Agency with input from the Design Professional, shall decide on the amount of liquidated damages and the amount of such damages to be included in the project specifications.

After funds have been approved and distributed, the Agency, may proceed with obtaining a contract for architectural or engineering services and the awarding of contracts for the following but is not limited to construction, repairs, alterations, improvements, soil testing, and land survey. This process should be as follows:

A member of the Construction Section may be available for pre-construction conferences. Conferences shall be conducted at a location convenient to the site (Agency decision) with all parties (SBS, Agency project coordinator, and Design Professional) involved and all necessary information available including but is not limited to all subcontractors, applications for payments, payment procedures, change order process, construction time schedule, project superintendence, safety procedures, etc., that would be of significance to each particular project. The Design Professional shall provide the minutes of these proceedings to the parties involved. The Design Professional shall deliver a copy of the minutes, including the sign in sheet, to the Construction Section within five (5) calendar days of the meeting.

The contractor shall, during the progress of the work keep an accurate record of all changes corrections from the layouts shown on the drawings. Record of changes may be kept by accurately marking all changes on a set of prints during the progress of the job. Exact locations of all underground utility service entrances and their connections to utility mains as well as all valves, etc., which will be concealed in the finish work shall be accurately indicated on the drawings by measured distances. Depths as well as horizontal distances shall be shown. Upon completion of the work and prior to final payments, the contractor shall furnish to the Design Professional, one (1) set each of "record" reproducible prints legibly and accurately drawn to indicate all changes, additions, deletions, etc., from the contract drawings the Design Professional shall verify and add to information as required and transmit these reproducible prints to the Agency. On SBS' owned property the Engineering Section shall receive the copy of the "record" drawings of reproducible prints or cd-rom copies for record keeping.

Upon completion of the work and before final payment will be authorized, the contractor shall furnish the Design Professional, for review and approval prior to transmission to the Agency, the contractor's one-year acceptance warranty, bonds, roof warranties, termite inspection, maintenance and operation manuals and operation training, air balance data, shop drawings, catalog data, as-built "record" reproducible prints, etc., as called for under the various Divisions of Specifications. Certification of the above will be made by the Design Professional and attached to the contractor's request for final payment.

Before final payment the contractor shall furnish to the Design Professional four (4) executed copies of the required documents as required by § 4-703 which shall be attached to the contractor's request for final payment.

Small Orders are exempt from Construction, Engineering or Architectural Sections' approval.

Competitive bids, which are under $20,000, are exempt from Construction, Engineering or Architectural Sections' approval.

For contracts which are $20,000.00 or more:

Any penalties for the delay in processing of payments may be processed in accordance with Ark. Code Ann. § 19-4-1411, § 22-9-205.

Pursuant to Ark. Code Ann. § 19-4-1415, SBS, unless exempted by law, has authority to approve and administer contracts (contractor, construction manager, architect or engineer) for projects that are $5,000,000 or more, which are awarded through negotiations instead of the bid process. This type of alternative delivery method of contract shall be referred to as "negotiated work".

The Construction Section shall approve all payments and revisions to the contract documents:

This manual has been compiled to provide every state agency, board or commission with written standards for the most economical and efficient utilization of space and with written procedures to be followed in leasing that space.

Pursuant to the Arkansas State Building Services Act (Ark. Code Ann. § 22-2-102 et seq.), the Real Estate Services Section of SBS is the leasing agency for all state agencies (agencies, boards, commissions and institutions of higher education).

STATE OF ARKANSAS LEASE AGREEMENT

This Lease is made this day of ___________ , 20___, by which Lessor leases the PREMISES to Lessee through SBS, Lessee's Leasing Agent.

For the purposes of this Lease Agreement the following definitions apply:

"LESSOR" means: LESSOR'S NAME, individual, partnership or corporation

"LESSEE" means: STATE AGENCY AND PERMANENT ADDRESS, an agency of the State of Arkansas.

"SBS" means the Real Estate Services Section of Arkansas State Building Services. By law SBS is the leasing agency for LESSEE. Arkansas Code Annotated § 22-2-114. SBS is not an additional LESSEE and therefore shall not owe any rent.

"PREMISES" means the property which is the subject of this Lease which is further described in paragraph #1.

To ensure an equitable opportunity for all practicing design professionals, SBS has initiated the following procedures that shall be followed to select firms or individuals to perform professional services for capital improvement projects. All agencies except as exempted by law, are required to use the MSC. The State Architect or his designee will coordinate selection of architects and related building consultants. Selection of engineers and land surveyors, including mechanical, electrical, civil, structural, geo-technical and environmental consultants, will be coordinated by the State Engineer or his designee.

After approval by SBS to conduct selection procedures, the selecting Agency shall be required to publish a notification that Design Professional services are being solicited. A notice shall be published in at least one (1) statewide newspaper for each project pursuant to the advertisement criteria under §6-102(C). It shall run for 3 consecutive days. Other publications, including but not limited to are the F.W. Dodge Reports and Construction Market Data.

The following are minimum qualifications required for Design Professionals desiring working for the State:

A minimum of ten (10) working days will be allowed for all interested design professionals to respond in writing (FAX or telegram communications are not acceptable) to the Agency indicating their interest in providing professional services for the particular project published. Responses shall be sent directly to the Architectural or Engineering Section, if stipulated in the advertisement. EXCEPTION: Allow fifteen (15) working days for projects that are large or complex and that might require the services of an out-of-state design or consultant firm.

The fees in these schedules are the maximum that will be allowed and are considered necessary for the performance of adequate professional services, unless exempted by law. Any increase beyond the scope of the fee schedule must be jointly approved by the State Architect or State Engineer and the Director. Refer to §6-223 and 7-203 for schedules.

For boundary or topographical land survey services refer to § 7 -201; for Geo-technical engineering services, refer to § 7 -202; for civil and environmental engineering services, refer to § 7 -203; for building related civil, structural, mechanical and electrical engineering services, refer to § 7 -204; for seismic design fee allowance refer to § 7 -205 and for asbestos consultant fees refer to §7-206

Fees may be negotiated on a percentage of construction cost, lump sum, or hourly fee (not to exceed) agreement with approval by SBS. Specialized consultants could include the following specialized fields including but not limited to: acoustical, theatrical lighting, parking, food service, solar, computer, parks, museum, landscaping, graphic, geo-technical, testing, land surveying, and land planning.

A basic interior design service fee not to exceed ten percent (10%) maximum of the total cost of all furniture, draperies, equipment, fixtures, paintings, artifacts, and the like, including planning and observation of placement and installation of same, shall be used by all agencies. Extra services desired by the owner shall require prior approval by the State Architect. Include all "Interior Design Fees" under "compensation" in the Professional Service Contract and list as "Additional Services".

As an alternative to the fees as a percent of construction cost set forth in § 6 -202, § 6-203, and § 6-223, the Agency may negotiate a lump sum or hourly (not to exceed) fee contract, subject to approval by SBS. The lump sum or hourly (not to exceed) fee should be based on the estimated construction cost, which is applied the percentages set forth in § 6-223 or, a lesser percentage figure may be used if SBS determines that portions of the design work can be furnished by other qualified sources. When a lump sum or hourly (not to exceed) fee basis is contemplated, then public notification to Design Professionals should so state.

All basic compensation items, compensation for additional services, and reimbursable expense items, shall be carefully reviewed by both the Agency and design professional before signing the standard professional services contract. The signature page of this form shall be the only signature page in the agreement. Delete or strikeout the signature pages from all attachments to avoid confusion. Upon request, the State Architect or State Engineer or both are available for contract draft reviews between the Agency and the design professional.

Submit all contracts to the Construction Section for funding review. Contracts will then be forwarded to the State Architect or State Engineer respectively. Agencies shall allow SBS seven (7) working days prior to the Department of Finance and Administration's deadline for submission and review of all new contracts or amendments.

Outlined below are the steps that will normally be followed in the development of a building project from inception to acceptance by SBS. In individual cases there will, of course, be a variance from the procedures shown below. It is anticipated that these will be the exception rather than the rule. Refer to § 3-100 through § 3-102 for building or site acquisitions; § 6-100 for design professional selection; and § 7-301 for boundary and topographic land surveys; §7-302 for geotechnical services; §7-400 for the recommended grading standards; §7-600 for mechanical and electrical requirements for buildings; and §7-900 for issues concerning asbestos in buildings.

The Agency notifies the State Architect or State Engineer or both of its intent to do construction or improvement work.

"Authorization to Proceed" with the project will be given to the Agency concerned, providing appropriate funding is available for the project. It is recommended that all cost estimates for construction, all projected building costs, and all methods of finance include a contingency fund. Contingency funds should be used to offset inflation, unforeseen expenses, and/or cost overruns on construction projects. Items that could or may be covered by a contingency fund are unexpected utility work or relocation, damaged roof decking replacement, rock excavation, and the like. Contingency funding normally should not exceed 10% and should depend on the cost and complexity of the project, with a proportionately smaller amount as project budgets increase. While 5 to 10 percent may be necessary on low cost projects, this percent may be excessive on higher cost projects (1-1/2 to 2-1/2 percent may be sufficient). Overall building budgets should be reviewed with the State Architect, State Engineer, or Design Professional chosen to perform the work. Contingency funds are not set up to cover the cost of errors in design and construction by the Design Professional, or for lack of coordination on their part, which requires remedial work during completion of construction. Refer to § 6-216 for Errors and Omissions as defined by SBS.

SBS shall ensure that reference is made to the Arkansas Fire Prevention Code. Arkansas laws and SBS Regulations shall have precedence over the Arkansas Fire Prevention Code where they exceed the requirements of that code. All Design Professionals shall comply with all Arkansas laws and the Arkansas Fire Prevention Code in regard to seismic design. SBS shall reference these codes in its review of bid documents for these projects.

Upon Agency approval of the completed construction documents, the Agency Project Coordinator shall inform SBS and the Design Professional in writing that the Agency accepts and approves the drawings as submitted. There shall be no changes from the date of the letter unless submitted and approved by procedures initiated by SBS.

Bid date requests to the Construction Section may not be made until the has received approval; from the State Architect or the State Engineer. If the Design Professional is responsible for coordinating the bid date, he must secure written approval from the Agency to proceed to bid. He may then contact the Construction Section to coordinate a bid date, time, and location. All request for bid dates shall include a copy of the SBS approval letter. Upon coordination with the Construction Section, the project may be advertised and bid documents released to bidders. (Refer to § 4-303)

The Council has adopted the following schedules for Design Professional and consultant services to be used by the various agencies for capital improvement projects.

Boundary or topographical land surveys are considered a specialized engineering services and fees for these types of services shall be negotiated on an hourly not-to-exceed rate or a lump sum commensurate with the scope of the survey. Fees for this type of service require the approval of the State Engineer. Prior to finalizing the negotiations, agencies shall submit a draft of the scope of the work and the proposed fee arrangement to SBS.

Geo-technical investigations are considered a specialized engineering service and fees for geo-technical services may be negotiated on an hourly not-to-exceed fee or a lump sum agreement. If conditions are such that a lump sum (not to exceed) cannot be guaranteed, then a unit price per boring or trench may be included to cover the suspected conditions that may be encountered. The State Engineer shall approve fees for geo-technical services. Prior to finalizing the negotiations, submit a draft of the scope of the work and the proposed fee arrangement to SBS.

Fees for civil, structural, mechanical, and electrical engineering projects related to a building construction or renovation project shall be included as a part of the Design Professional's basic services fee and shall be as established in § 6-223. Fees for civil engineering projects related to the construction or renovation of buildings such as water and waste water treatment plants may be negotiated in accordance with § 7-203 subject to pre-approval by the State Engineer.

Asbestos inspection, design, air monitoring and project management services are considered a specialized consulting services and fees for these types of services shall be negotiated on an hourly not-to-exceed rate, a daily or abatement shift rate or a lump sum commensurate with the scope of the project. The State Engineer shall approve fees for this type of service. Agencies shall submit a draft of the scope of work and the proposed fee arrangement to SBS prior to finalization of negotiations.

All projects shall be submitted to SBS through the Agency Project Coordinator pursuant to § 6-305). For design, specification and drawing standards refer to § 6-313 through § 6-316 and for plan submittal requirements refer to § 6-318 through § 6-321.

All Design Professionals shall comply with all Arkansas laws and regulations and the current Arkansas Fire Prevention Code in regard to seismic design. SBS shall reference these requirements during the plan review. For additional requirements refer to § 6-311.

These requirements apply to new construction and renovation projects only. Existing conditions or systems are exempt these requirements. Agencies are encouraged to upgrade existing systems to meet these requirements as much as practical when equipment or system components are replaced.

Agencies and the Project Designer are encouraged to evaluate all material and equipment selections on the basis of life cycle cost as opposed to a first cost only. During a competitive bid process for construction, often the product having the better life cycle cost can be incorporated into the project for little or no incremental cost over the lesser quality product. Agencies should evaluate the proposed products at a 25 or 30 year life cycle. Careful consideration should also be given to the utility escalation rates, the maintenance rate and the discount rates for the cost of money. These factors can vary significantly from those applied to private sector cost (shorter life cycle) and if improperly applied can invalidate the analysis.

Where possible use automatic controls for HVACR systems and for lighting applications. Space temperature and humidity should be controlled by automatic controls capable of maintaining the space setpoint within a fixed upper limit and lower limit. Where practical, provide for the automatic setback or setup of the space temperature during the unoccupied periods. Avoid turning off systems where the rise in space temperature or humidity above the ASHRAE recommended maximums might result in damage to the building materials or growth of microbiological organisms. Avoid exposing the building water systems or other components to potentially damaging freezing conditions. Where possible, use space occupancy sensors such as motion sensors to control lighting and individual room air conditioning terminal units allow setback or to turn out the lights when a space is unoccupied. Where sufficient natural lighting exist due to windows or skylights, use automatic lighting controls to regulate the overall space lighting levels.

When automatic controls are not part of the building systems, the state building manager should develop policies for each building or facility. These policies should be written and distributed to all employees. The policy should encourage the conservation of energy through the direct involvement of the building occupants. Occupant efforts should include activities such as turning lights off when not in use; maintaining thermostat settings as directed by the building manager; set-back or set-up thermostat settings during the un-occupied periods; do not leave windows open when the building heating or air conditioning systems are in operation; use the blinds or drapes to moderate the lighting level in the space so as to take maximum advantage of the natural lighting and so as to reduce the building air conditioning load; leave blinds or drapes closed when the space is un-occupied and over the weekends and holidays; do not use electrical space heaters in spaces that are air-conditioned. Adjust the cooling set point or encourage employees to dress in multiple layers of lightweight clothing such as jackets or sweaters, which can be removed or added to accommodate individual variations in comfort levels.

Today's buildings and our expectations in their performance are becoming increasing sophisticated. Like any sophisticated machine, a building should be set-up and balanced to operate properly and may require a periodic tune-up to remain operating at peak efficiency. Agencies are encouraged to consider the concept of total building commissioning on new construction projects and major renovations. Commissioning when applied from the beginning of the design process and continuing through the warranty period can result in projects that cost less to construct, startup with fewer problems, and have proper documentation for operations and maintenance. In many cases, the cost of the commissioning process is offset by a reduction in construction cost, change orders and startup problems.

Plans and specifications that may be developed as a part of a commissioning project must be submitted to SBS for review and approval prior to issue. Input from the commissioning agent during the design phase should be carefully documented to evaluate the validity of recommended design changes. These changes should be included in the plan review submittals under the heading "Commissioning Agent's Recommendations". The activities of a Commissioning Agent may affect the progress or schedule of the building construction project particularly where defects or omissions are discovered. The construction bid documents should acknowledge the presence of an independent commissioning agent on the project and should clearly define the role of the agent and the responsibilities of the contractor to the agent as an authorized representative of the Agency.

It shall be the policy of SBS that State owned buildings be surveyed for asbestos containing materials (ACM) before demolition or construction work begins or where otherwise required by State and Federal laws and regulations. Even if no demolition or construction work is planned; SBS encourages operators of state owned buildings to obtain a survey for asbestos. The survey report should be used to make building maintenance/service personnel or interested building occupants aware of the location and condition of the ACM. A management plan for each surveyed building should be developed in accordance with federal guidelines and industry practices.

The Arkansas Department of Environmental Quality (ADEQ) regulates activities related to Asbestos Containing Materials (ACM). Refer to ADEQ Regulation 21 for the State's policy and procedures related to ACM. SBS has no oversight on projects related solely to the activity of asbestos abatement. Projects where only the removal of ACM is the focus of the work are not considered capital improvements. For projects limited to the removal and disposal of ACM, agencies may procure the services of an asbestos consultant for the inspection, design, and project management and may contract for the abatement activity pursuant to policies established by Agency management and state laws. Agencies do not need to seek SBS approval for the selection of the consultant, the contract with the consultant, the plans and specifications for the abatement project or the contract with the abatement contractor. Nothing in this policy shall prohibit an Agency from seeking the guidance and counsel of SBS on any aspect these types of projects. All requests for such guidance should be directed to the SBS Director.

Unless adequately trained, experienced, and licensed personnel are employed by an Agency, SBS recommends that private sector licensed asbestos consultants be utilized to survey, investigate, prepare abatement documents, and monitor abatement activities. Asbestos consultants shall be considered as design consultants and as such may be hired in accordance with the Agency's policy and State law governing procurement of consulting contracts. Asbestos consultants shall be licensed and bonded as per Ark. Code Ann. § 20-27-1001 et seq.

For project subject to SBS approval (refer to §7-902), before a bid date is provided, these documents shall be reviewed and approved by SBS. This review and approval process will generally be the same as described in § 6-100 et seq. for construction projects, except that all abatement and replacement projects shall be submitted for a combined First and Final Review regardless of the size of the project. A designer who is properly licensed by ADEQ shall prepare the bid documents for asbestos abatement projects. The designer's license number must appear on the cover sheet for projects submitted for SBS review. The Project Coordinator shall ensure that these projects are complete and accurate prior to submitting to SBS for review.

Abatement contractor activities should be adequately supervised and monitored by the asbestos consultant. The frequency of inspections and type of air monitoring shall be as established by State and Federal laws and regulations. On abatement projects occurring in occupied buildings, supervision and monitoring of the abatement work should be more intense, as dictated by the particular project circumstances.

All cabling shall conform to the latest industry standards applicable to the specific system at the time of installation. Cabling not installed in a closed conduit system should be specified to be plenum rated cabling regardless if the space is a return air plenum or not. This will eliminate the need to replace the cabling system if the HVACR system is renovated to a return plenum system. In addition, plenum rated cabling generally develops less smoke and has a reduced flame spread in the event of a fire thus improving the fire safety of the building.